A growing trade and technology dispute over chipmaker Nexperia between China and the Dutch government is raising alarm among European automakers, who warn that disruptions in chip supply could soon halt vehicle production across the continent.
The European Automobile Manufacturers’ Association (ACEA) said Nexperia informed clients last week that it could no longer guarantee chip deliveries after China’s commerce ministry issued export restrictions on certain components made by Nexperia China and its subcontractors. “The interruption of Nexperia chip supplies could significantly disrupt European vehicle manufacturing,” ACEA said.
The crisis follows the Netherlands’ decision to take control of Nexperia on September 30 over national security concerns tied to its Chinese parent Wingtech, which was placed on the U.S. entity list last year. The move, influenced by U.S. pressure, has drawn Beijing’s ire, with China accusing the Dutch government of “interfering in enterprise operations.”
Although Nexperia’s chips are not technologically advanced, they are vital for car electronics and produced in huge quantities. The company’s largest plant is in Hamburg, Germany, with assembly and packaging largely done in China.
Automakers including Volkswagen, BMW, Mercedes-Benz, and Stellantis, as well as suppliers like Bosch, said they are closely monitoring the situation and assessing potential impacts. So far, production has not been affected, but companies warn of looming shortages if the dispute is not resolved soon.
China’s commerce ministry said it will take “necessary measures” to protect Chinese firms’ interests, signaling the potential for a deeper rift as Europe’s auto industry becomes caught in the geopolitical crossfire of the U.S.-China tech confrontation.
